A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine…

A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine…

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A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the magazines for $1.55 and sells them for $3.88. Any
magazines left over at the end of the month are donated to hospitals and other health care facilities. Modify the newsvendor example spreadsheet to model this situation. Use what-if analysis to investigate the financial
implications of this policy if the demand is expected to vary between 10 and 30 copies each month.
The demand must be at least
(Type a whole number.)
copies for the gasoline mini-mart to break even.
Newsvendor model spreadsheet
1 Newsvendor Model
2
3 Data
4
5 Selling price
6 Cost
7 Discount price
8
9 Model
0
11 Demand
12 Purchase Quantity
13
14 Quantity Sold
15 Surplus Quantity
16
17
Profit
D
$3.88
$1.55
SO
10
24
The formula for the quantity sold is =MIN(B11,B12).
The formula for the surplus quantity is =MAX(0,B12-B11).
The formula for the profit is =B14*B5-B12*B6.

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